diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/tower/ResolvedAtomCompleter.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/tower/ResolvedAtomCompleter.kt
index 385022caaaa..6ba0cf30eac 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/tower/ResolvedAtomCompleter.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/tower/ResolvedAtomCompleter.kt
@@ -133,7 +133,13 @@ class ResolvedAtomCompleter(
             resultSubstitutor.safeSubstitute(lambda.returnType)
         }
 
-        updateTraceForLambda(lambda, topLevelTrace, returnType)
+        val approximatedReturnType =
+            TypeApproximator().approximateDeclarationType(
+                returnType,
+                local = true,
+                languageVersionSettings = topLevelCallContext.languageVersionSettings
+            )
+        updateTraceForLambda(lambda, topLevelTrace, approximatedReturnType)
 
         for (lambdaResult in lambda.resultArguments) {
             val resultValueArgument = lambdaResult as? PSIKotlinCallArgument ?: continue
diff --git a/compiler/testData/codegen/box/inference/integerLiteralTypeInLamdaReturnType.kt b/compiler/testData/codegen/box/inference/integerLiteralTypeInLamdaReturnType.kt
new file mode 100644
index 00000000000..d52996b9983
--- /dev/null
+++ b/compiler/testData/codegen/box/inference/integerLiteralTypeInLamdaReturnType.kt
@@ -0,0 +1,18 @@
+// !LANGUAGE: +NewInference
+// TARGET_BACKEND: JVM
+// WITH_RUNTIME
+
+class Foo<C : Any> {
+    fun test(candidates: Collection<C>): List<C> {
+        return candidates.sortedBy { 1 }
+    }
+}
+
+fun box(): String {
+    val foo = Foo<String>()
+
+    val list = listOf("OK")
+    val sorted = foo.test(list)
+
+    return list.first()
+}
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
index ec24c7eea9a..d20f74cbe70 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
@@ -11870,6 +11870,11 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
             KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/box/inference"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.JVM, true);
         }
 
+        @TestMetadata("integerLiteralTypeInLamdaReturnType.kt")
+        public void testIntegerLiteralTypeInLamdaReturnType() throws Exception {
+            runTest("compiler/testData/codegen/box/inference/integerLiteralTypeInLamdaReturnType.kt");
+        }
+
         @TestMetadata("kt10822.kt")
         public void testKt10822() throws Exception {
             runTest("compiler/testData/codegen/box/inference/kt10822.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
index d5518a9af85..a27e19e2174 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
@@ -11870,6 +11870,11 @@ public class LightAnalysisModeTestGenerated extends AbstractLightAnalysisModeTes
             KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/box/inference"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.JVM, true);
         }
 
+        @TestMetadata("integerLiteralTypeInLamdaReturnType.kt")
+        public void testIntegerLiteralTypeInLamdaReturnType() throws Exception {
+            runTest("compiler/testData/codegen/box/inference/integerLiteralTypeInLamdaReturnType.kt");
+        }
+
         @TestMetadata("kt10822.kt")
         public void testKt10822() throws Exception {
             runTest("compiler/testData/codegen/box/inference/kt10822.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
index 3c2f648128b..4aed2a0238b 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
@@ -11875,6 +11875,11 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
             KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/codegen/box/inference"), Pattern.compile("^(.+)\\.kt$"), TargetBackend.JVM_IR, true);
         }
 
+        @TestMetadata("integerLiteralTypeInLamdaReturnType.kt")
+        public void testIntegerLiteralTypeInLamdaReturnType() throws Exception {
+            runTest("compiler/testData/codegen/box/inference/integerLiteralTypeInLamdaReturnType.kt");
+        }
+
         @TestMetadata("kt10822.kt")
         public void testKt10822() throws Exception {
             runTest("compiler/testData/codegen/box/inference/kt10822.kt");